Shell Completes Divesting 30% Stake in Nigeria's OML 18 to Eroton for $737M

Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell), completed the assignment of its 30 percent interest in oil mining lease (OML) 18 and related facilities in the Eastern Niger Delta, Nigeria to Eroton Exploration & Production Company Ltd. for $737 million.

"This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business," Shell said in a press release Friday.

Despite the divestment, Shell said it remains committed to keeping a long-term presence in Nigeria.

OML18, spread over an area of 400 square feet (1,035 square kilometers), includes the Alakiri, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities. The divested infrastructure includes flow stations together with associated gas infrastructure plus oil and gas pipelines within the OML. The divested fields produced on average around 14,000 barrels of oil equivalent per day (100 percent) during 2014.

Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited have also assigned their interests of 10 percent and 5 percent respectively in the lease, bringing Eroton Consortium's total interest in OML 18 to 45 percent.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  What Should Go On Your Electrical Engi... (Jul 25)
 -  AECOM to Lead Permitting for Monkey Is... (Jul 25)
 -  LyondellBasell Plans Its Largest Inves... (Jul 21)
 -  Preparing a Mechanical Engineering Res... (Jul 19)
 -  Tesoro Signs Deal with Pemex to Enter ... (Jul 19)


Most Popular Articles

From the Career Center
Jobs that may interest you
Contracts Administrator
Expertise: Contracts Administration
Location: Anacortes, WA
 
Sr. Project Manager
Expertise: Project Engineer|Project Management
Location: Odessa, 
 
Contract Specialist II
Expertise: Contracts Administration
Location: Midland, TX
 
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours